Libra, the cryptocurrency planned by Facebook, has caused a good amount of controversy in a lot of circles. And now, Haruhiko Kuroda, the governor of the Central Bank of Japan is asking the international community to join forces in their efforts to regulate Libra. Kuroda, while talking to business leaders in Osaka, said that a joint effort from the international community is crucial.
Kuroda says the introduction of Libra could mean drastic changes for society. Kuroda suggested to policymakers that they apply the highest level of regulation possible when it comes to Libra.
The announcement by Kuroda comes after a number of other governments expressed similar sentiments regarding Facebook’s Libra announcement.
Bruno Le Maire, the Finance Minister of France, spoke on the issue of Libra two weeks ago. The finance minister called on the European Union to establish cryptocurrency regulations that will guard against the problems that could be experienced as a result of Libra.
The history that Japan has with cryptocurrency makes it no surprise that the country is skeptical of Libra. In 2014, the Japanese-based cryptocurrency exchange, Mt. Gox, collapsed. Customers of Mt. Gox lost $450 million in bitcoins. The collapse of the company exposed a number of problems in the industry that Japan and other countries have been working to fix ever since.
Japan has expressed favorable views toward cryptocurrency and blockchain technology. However, the nation set forth much stricter rules earlier this year to govern the trading of digital currencies. The new rules will be put in place for the protection of investors and go into effect next year.
The Financial Services Agency in Japan announced last year that it was also developing regulations for the wallet services that allow users to collect and store their cryptocurrency.
The governments of a number of countries have expressed the desire for heavier regulation of cryptocurrency over the years. Many believe the perceived threats from Libra could become a catalyst to assure these regulations are implemented.